‘Families deserve better’: MPP urges homebuyers to report their frustrations to the auditor general of Ontario

A non-profit agency has been created, aiming to protect consumers of newly constructed homes. CTV Windsor’s Stefanie Masotti has more.

A Member of Provincial Parliament is sending a message to home builders - don’t build a new home if you aren’t going to do it properly or safely.

He says an alarming number of new construction homeowners are vocalizing their horror stories after their warranty claims were denied.

“This is absolutely unacceptable,” said Tom Rakocevic, NDP MPP and Critic, Public and Business Service Delivery, Procurement and Auto Insurance Reform. “They have to clean up their act.”

Rakocevic is calling on all homeowners to email their stories to their local MPP and the office of the Auditor General of Ontario.

“Whether it’s $300,000 or $1M you paid for a house, you assume would be safe,” said Teresa Maceroni, a homeowner, who filed multiple complaints about the construction of her home to Tarion, Ontario’s home warranty program. “I kept on sending them emails. They didn’t come back.”

In a statement sent to CTV News officials say:

“Tarion provides a backstop for warranties in cases where builders are unable or unwilling to meet their obligations,” said Andrew Donnachie, Tarion, Stakeholder Relations Director.

The goal is to ensure warranty coverage on the purchase of a home.

In 2019, an auditor general’s report found over a 4-year period almost 10,000 requests from consumers were dismissed because of restrictive deadlines and that Tarion was spending millions of dollars on bonuses for executives but not paying attention to disputes raised by homebuyers.

In 2021, following conflict of interest concerns, the Home Construction Regulatory Authority (or HCRA) was created. It oversees builder licensing and runs an online Builder Directory for consumers to research builders.

Claims through Tarion are reported to the HCRA which are then listed on the HCRA’s building directory.

“People should have the opportunity to go look up that do some research, look at the history of the builder that they’re buying from,” Rakocevic added.

Rakocevic alleges problems didn’t stop after the HCRA was created claiming the builder’s directory does not provide an accurate number of claims and lawsuits.

“There are certainly builders out there that might have lists of problems and infractions where they’ve had to pay out hundreds of thousands or millions of dollars,” said Rakocevic. “But if you go online, perhaps some of them have a clean record, and probably in all cases, it is being under-reported.”

In a statement sent to CTV News officials say they receive claims warranty data from Tarion and that information is what is posted on the Ontario builder directory.

“The New Home Construction Licensing Act governs the types of information we are authorized to disclose publicly. As such details on individuals claims, the total number of claims and/or any civil suits are not available on the directory,” said Tess Lin, Communication Director, HCRA.

“They have a range of enforcement tools at its disposal. Depending on the situation, they may issue a warning, place conditions on a licence, or move to suspend or revoke a licence in the most serious cases.”

A statement from the Minister of Public and Business Service Delivery and Procurements, Conservative MPP Stephen Crawford states “Our government will continue to strengthen consumer protection for the people of Ontario.”

With claims going underreported, Rakocevic is urging all homeowners facing problems or deficiencies left behind by a builder to email their MPP and the office of the auditor general of Ontario.

“Ontarians deserve better. Families deserve better,” said Rakocevic.